Top Investor Success Tips from Seattle Apartment Managers

Updated December 16, 2024.

Becoming a residential rental property investor means going through a learning curve. While you may have experience as a renter in the past, that doesn't qualify you as a rental property owner! 

As Seattle property managers, we understand this is a business, not a way to make friends. However, many property owners don't realize that when they acquire an investment property with the intent to rent, they are essentially launching a business—and a career.

Yes, mistakes are going to happen. Still, with the following tips from a seasoned property management company in Seattle, WA, you're sure to make less of them!

Note: This article is not legal counsel. If you need real-time assistance, reach out to Real Property Associates!

Don't Be Your Renter's Friend

There's a significant difference between rental property owners and their residents being "friendly" and becoming friends. There's nothing wrong with being cordial with your renters! That's one of the best ways of retaining them and getting referrals for additional renters. 

However, Seattle apartment managers know it's important to draw a professional line in the sand.

Here are some tips for how to create this buffer:

• Setting specific business hours: Avoid answering calls, emails, or text messages during off-hours. The only time you should hear from a renter during off-hours is if there's an emergency.
  
  
• Avoid social interactions with renters: Social interactions means going out, spending time in their rental units, or other events where it's more appropriate for friends to attend. Hosting an event for all residents is one thing, but going out to dinner with renters is another.
  
  
• Don't share too much: Your renters don't need to know details about your life, including family drama or other difficulties. Keep conversations directed to local events or news if you decide to make 'small talk.'

Maintaining professionalism helps establish clear boundaries and fosters mutual respect between property owners and renters.

Don't Use One-Size-Fits-All Leasing Forms

Property owners who aren't working with professional Seattle apartment managers should avoid using prefabricated leases.

• This documentation is typically available as a free download online. However, they're not comprehensive and miss several critical details.
  
  
• Instead, hire an attorney to draft your lease. That way, they're covering every legal point and not leaving out any critical details.

This step is one of the most important you can take! Using a prefabricated lease could lead to the following issues:

• Some of these leases have the renter's best interest at heart, which leaves investors dangerously exposed.
  
  
• The language in the lease might not reflect the investor's wishes for their property or requirements.
  
  
• The lease might include clauses that take control away from the investor and give it to the renter.

Taking the time to create a tailored lease agreement can save property owners from costly disputes and misunderstandings in the future.

Price Your Rental Rate Correctly

Pricing your rental is another area where Seattle rental property owners tend to make mistakes. Setting rental rates too low, for instance, can result in revenue loss.

However, setting rental rates too high can also result in lost revenue. Overpriced listings often deter renters, leading to prolonged vacancies and missed income opportunities.

Here are some tips for how to set rental rates:

• Investigate rent-control laws: Rent control means there's a limit to how high you can set your rental rates. However, there are no rent control laws in the state of Washington.
  
  
• Research rental rates in your area: Look at other rentals in your area with similar amenities and use those competitor listings to help set your rental rates.
  
  
• Budget for maintenance, repairs, and utilities: Plan for the cost of property maintenance, repairs, and utilities using a spreadsheet or accounting software. Annual repairs and maintenance could account for up to 50% of your annual rental income.

Thoroughly Screen Any Applicants

Screening involves looking at the renter's background, which includes previous rentals, credit, and employment histories. While no background screening process is perfect, it's a good idea to perform them for every renter. Taking this step can save a significant amount of money and stress down the road.

Here are some examples of background screenings Seattle property managers can perform for you:

• Criminal record check: You can conduct these on a county or state level. If you deny a renter’s application because they have a criminal record, you must provide a copy of the report with a written explanation.
  
  
• Sex offender registry: California may prevent anyone from 'discriminating' against those who are on a sex offender registry. However, in the state of Washington, having this information is critical if other renters have children or your property is near a school or playground.
  
  
• Credit report: This background screening helps determine a renter's financial responsibility. While it doesn’t include credit scores, it does provide insight into an applicant's financial history, such as bankruptcies, accounts in collection, judgments from previous property owners, and open loan accounts.
  
  
• Proof of income: Investors can request paycheck stubs or other forms of income verification to confirm that the applicant can afford the rental rates.
  
  
• Employment history: This information confirms the applicant's current employment status and reveals any significant periods of unemployment or gaps in their work history.

If you use a consumer reporting agency, the screening process must comply with the Fair Credit Reporting Act (FCRA). If you’re not working with a professional Seattle apartment manager, it’s essential to use a third-party screening service to help protect yourself from liability.

Turn to Real Property Associates for More Insight!

Becoming a successful residential rental property owner in Seattle requires more than just acquiring a property and finding renters. It’s about managing your investment strategically, maintaining professionalism, and making informed decisions that protect your business and enhance tenant satisfaction.

By implementing the tips shared in this blog—such as setting clear boundaries with tenants, crafting tailored lease agreements, pricing your rental appropriately, and thoroughly screening applicants—you can avoid common pitfalls and position yourself for long-term success.

Mistakes are inevitable, but with the right resources and guidance, you can minimize them and build a thriving rental business. Partnering with experienced Seattle property managers, like Real Property Associates, ensures you have expert support every step of the way. Let us help you navigate the complexities of property management and maximize your investment’s potential.

Download our Seasonal Maintenance Checklist, designed to help Seattle rental property owners get started the right way—profitably.